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Oil & Gas in East & Southern Africa - Opportunities & Challenges for Investment . John Smelcer , Head of Oil & Gas. November 2013. OIL & GAS SECTOR GROUP. INTRODUCTION. Introduction. Region known for mining becoming a petroleum region, led by recent large-scale gas discoveries
John Smelcer, Head of Oil & Gas
East & Southern Africa
Proven Oil Reserves of 3.75 billion barrels.
Onshore oil discoveries estimated at 10 billion barrels – recent Tullow Oil announcement of commercial exploitable reserves.
Democratic Republic of the Congo (DRC)
Lake Albert development
Tanzania reports discoveries of an estimated 35 tcf of gas, enough to make Tanzania a major player in LNG exports behind Mozambique. Many estimate recoverable reserves to approach 45-60 tcf in Tanzania.
Anticipated new large-scale offshore oil & gas discoveries. Further development of the upstream portion of the Kudu Gas Field.
Large reserves of coalbed methane (CBM) gas have been discovered in Botswana – Botswana Department of Geological Survey estimates that 196 tcf of “gas in place”.
Mozambique is likely to become the world’s third largest exporter of LNG, behind Qatar and Australia with likely total gas reserves of approx. 235 tcf and plans by ENI and Anadarko to develop a US$50 billion LNG project in the country in the near term.
It is estimated that the shale gas of the southern karoo area could hold a reserve of 485 TCF, which would make it the fifth largest shale gas field in the world. Also possible large-scale offshore discoveries.
Qatar Growth Story (source: Silk Road Finance)
The estimated shale gas reserves in the Southern Karoo area are at 485 tcf, which would make it the fifth largest shale gas field in the world, behind China, USA, Argentina and Mexico
USA shale gas transformation
Economics are different in different contexts, though LNG tends to present the highest pure economic return under current market conditions
In Mozambique and Tanzania, operators are pushing for large-scale LNG projects, but query whether government will require that a portion of the discovered gas be utilised for other downstream (and onshore) activities
In Botswana and South Africa, other down-stream options may be more attractive given the difficult route to market for LNG and other pressing priorities such as power and liquid fuel requirements
Template of the South African renewables program can and is being used for a thermal-fired procurement program for gas
National Oil Companies
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